Next Major Step for VEON: Kyivstar Approaching U.S. IPO

The Dubai-based telecommunications company VEON plans to list its Ukrainian subsidiary Kyivstar on a U.S. stock exchange. This would make Kyivstar the first Ukrainian company to reach an American stock exchange. VEON has signed a letter of intent with Cohen Circle to advance a merger of the two companies, aiming to indirectly list Kyivstar on the Nasdaq. After withdrawing from the Amsterdam stock exchange in 2024, Nasdaq remains the only trading venue for the parent company. VEON aims to complete Kyivstar's listing, the leading mobile operator in Ukraine, through a Special Purpose Acquisition Company (SPAC) by the end of the year. This method was chosen due to its simpler process compared to a traditional IPO, according to an insider. A definitive agreement with Cohen Circle, which is also listed on Nasdaq, is expected for the second quarter of 2025. The choice of the U.S. stock exchange over European or Asian markets was largely influenced by the rapid growth of the American stock market, as it facilitates access for international investors. The Ukrainian telecommunications market is increasingly opening up to foreign investments. For example, last year, French billionaire and Iliad founder Xavier Niel acquired Lifecell, Ukraine's third-largest mobile operator, for over 500 million dollars. The planned listing in the U.S. followed Kyivstar's partnership with Elon Musk's Starlink last December to provide satellite direct connections later this year in war-torn Ukraine. Ukrainian and U.S. authorities are intensely supporting the project as it could contribute to the reconstruction of Ukraine’s telecommunications infrastructure as well as consumer and business services. VEON also promises to invest one billion dollars in Ukraine's digital infrastructure by 2027.